Hungary secures $25b bailout

Hungary secured a 20 billion-euro loan from the IMF, the European Union and the World Bank to shore up its economy that was ravaged in the credit crisis and is headed for a recession next year.

The International Monetary Fund will lend 12.5 billion euros, the EU will provide 6.5 billion euros and the World Bank will add 1 billion euros for Hungary, the organizations said in statements on Monday.

Hungarian assets were battered as foreign-currency borrowing by local companies and consumers, along with slower growth, a wider budget deficit and higher government debt than elsewhere in Eastern Europe, raised concern that the country may have difficulties in securing funding.